Loan. What does it mean .

| Total Words: 257

Loan called the convention that one of the parties (lender) transfers to another (debtor) the ownership of things (cash or securities usually) and the debtor has the obligation to repay the things of the same quality and quantity of paying or not interest on the loan. The loan taken by the debtor to cover needs that can not meet with current revenue. Also, the loan is a form of capital by companies for the expansion of their business.
Loans are 1. Short term, when made for a period of less than one year, medium term for no longer than five years, a long term for more than five years and with no refund deadline, but redeems the first request. 2 Private and public when the debtor is the state or public agencies or private individuals and companies. 3. Consumer if carried out to meet current consumer demands and productively when it comes to financing business. 4. Internally, when events in the internal and external financial market if carried out with other countries or international organizations in foreign currency.

We also have with interest,interest-free and fixed interest loans. A great type of loan is the debenture. The company that wants to enter into a...

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